(Bloomberg) -- EOH Holdings Ltd. climbed the most on record as the South African technology firm announced plans to sell non-core businesses to generate about 1 billion rand ($71 million) to quash its debts.

The Johannesburg-based company will organize its operations into four units and will sell assets that don’t fit into the new structure, it said in a statement Tuesday.

“Within the next 12 to 18 months, we plan to sell our ERP businesses in the Middle East and Africa, and a number of other companies in the Nextec unit,” Chief Executive Officer Stephen van Coller said by phone on Tuesday, referring to enterprise resource planning. “The remaining Middle East and European businesses will then be integrated into our bigger ICT business.”

While it would be viable to separately list its enlarged information-technology business that will consists of South Africa, Middle East and Europe, Van Coller said he preferred finding the right partners when needed to grow the three other units.

Stock Surges

EOH surged 42 percent, the biggest intraday gain yet, to 18.40 rand by 1:03 p.m. in Johannesburg, paring its decline over the past year to 54 percent.

Van Coller, a former vice president of MTN Group Ltd. and before that head of Absa Group Ltd.’s investment-banking unit, was named CEO in July last year, tasked with EOH’s turnaround after allegations of mismanagement. Microsoft Corp. canceled a contract with EOH in February following anonymous complaints.

As part of the disposal plan, EOH reevaluated its assets and impaired them by about 1.7 billion rand. “With our new focused strategy, we had to look at the disposal value of the businesses, rather than a long-term internal value,” Van Coller said.

If the restructure is successfully implemented, EOH could boost earnings before interest, tax, depreciation and amortization to 600 million rand within the next 18 months from 387 million rand, Van Coller said.

(Updates share prices in fifth paragraph.)

To contact the reporter on this story: Loni Prinsloo in Johannesburg at lprinsloo3@bloomberg.net

To contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, Ana Monteiro, Gordon Bell

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